What does Subject Premium mean? Read on to discover the definition & meaning of the term Subject Premium - to help you better understand the language used in insurance policies.
In conjunction with retrospective rating, the portion of the premium applied to the retro formula. In reinsurance, the reinsurance rate is applied to the subject premium to produce the reinsurance premium. Subject premium is also known as the "base premium" or "underlying premium."
We hope the you have a better understanding of the meaning of Subject Premium.